S6E1: Economic Decision-Making 101 w/ Yung-Yu Ma

Welcome to Season Six of the Eccles Business Buzz podcast. We are
so glad to have you back as we kick off another series of great
conversations with our Eccles Community. This season, we are
continuing our discussion of equity, diversity, inclusion, and
empathy by focusing on economic inclusion. 





A key part of building an economically inclusive experience for
ourselves and others is understanding what is actually happening
in the economy. We all hear economic terms and forecasts in the
news, but do we really know what they mean and how they should
impact our decisions? Here to help dispel some of the mystery is
Yung-Yu Ma.  





Yung-Yu is Chief Investment Officer at BMO Wealth Management in
the U.S. He joined the organization in 2016, bringing a dynamic
combination of academic achievements and industry experience to
the Investment Strategy team. Yung-Yu is also an Eccles
alum, earning his PhD here in Finance.





He kicks off season six with host Frances Johnson by helping us
understand the economy. He’ll touch on inflation, interest rates,
navigating the job market, and how to stay informed while not
becoming overwhelmed by it all.  





And if you’d like to hear even more from Yung-Yu, join us for our
next Eccles Alumni Network Forum on Thursday, February 1st, from
noon to 1 p.m. Yung-Yu will be here on campus in conversation
with Adam Looney, executive director of the Marriner S. Eccles
Institute to discuss the 2024 Market and Economic Outlook and
considerations amidst global tensions, political choices, and the
year ahead. 





Register to attend the event in person or via live stream
today! 





Eccles Business Buzz is a production of the David Eccles School
of Business and is produced by University FM.



Episode Quotes:




The value of experience





[12:31] One thing that I would always coach students about is,
early on in your career, by far, what matters is the experience
you get in a particular job. Whether or not you get an extra few
thousand dollars or whether your salary is a little bit more or a
little bit less is not going to impact your long-term trajectory.
But in those early years in your career, having a good mentor,
building a good foundation, and learning a lot of skills and
knowledge can then benefit you later in your career when you do
actually get into the higher-earning years. Having that skill
set, that knowledge that you built up early in your career, is
going to be tremendously valuable.





The importance of investing on yourself





[21:25] I think that daily action, or consistent action, in terms
of building out one's knowledge and skill set, or reading up on
topics that could be beneficial to them, or learning
skills—whether it's presentation or communication skills or
technical skills, any of the above, depending on what fits with
their interests and career trajectory—that is, first and
foremost, the investment that people should be thinking about
when thinking about investments.





What’s the advantage of consistent investing?





[18:15] I think for most investors, it doesn't pay or it's not
favorable to try to make short-term, small changes. What's the
Fed doing this month versus what it might do in two months? The
big thing is really keeping a consistent investment program and
being aware of the times. When there might be bigger events
taking place.





When is a good time to invest and where is a good place
to invest?





[21:53] How do I look for investments or things we recommend to
clients? It can take a few different flavors, but certainly
investing in equity markets overall, and that refers to stocks,
whether it's in the U.S. or internationally. One favorable aspect
of the structure of investing in stocks is that when you take on
risk, the stocks in the marketplace are priced in a way that
should benefit you over time for taking on the risk of ownership.
Now, that doesn't mean in any given year, stock, or investment,
it can't turn out unfavorably. It certainly can. Everybody knows
that there's risk involved, but the reason that people still
invest in the stock market, in companies, in mutual funds, or
whatever vehicles is because, over time, there's a risk premium
that plays in your favor. So you should benefit over time by
investing in the equity markets, or even the fixed-income
markets, and investing in bonds.



Show Links:

Yung-Yu Ma, Ph.D. - BMO Wealth Management

Yung-Yu Ma LinkedIn